Monday, January 16, 2017

Pension alignment in East-West shall be paid by the contribution payer –

The planned increase in the Ostrenten on the higher Western level will be paid largely from the contributions of workers and employers. This is according to Reuters, the draft of the Federal Ministry of labour.

Therein the estimated costs up to the year 2024 to a total of up to EUR 15.7 billion. Starting in 2022, the Federal government contributes a subsidy increasing. The share adds up to 2.4 billion euros.

The German Federal pension insurance, which had called for the taxpayer funding, because the pension alignment in East-West belong to the consummation of German unity, and to Finance, therefore, for society as a whole.

It had originally also insists labour Minister Andrea Nahles (SPD). With Finance Minister Wolfgang Schäuble (CDU) agreed to you before Christmas, however, that first, the pension Fund to carry the costs alone.

employers criticize funding from contributions

The Confederation of employers ‘ associations (BDA) criticized the financing. “Not acceptable that the costs (…) are to be paid from the pension Fund and of employers and employees,” said a spokesman. Better pensions, unit cost-neutral to implement.

The design according to the pension value East to 1. July 2018 by 1.7 points to 95.8 percent of the West’s value will rise. In six further steps, an annual increase is foreseen of 0.7 percentage points, so that the 1. July 2024 is in the East and the West, the same pension value.

at the same time is lowered, the high-ranking factor, the Ost-Employed at the same salary for a higher pension entitlement to acquire employee than the West. The to 31. December 2024 high-ranked East merits, however, remained. You would be charged with the 2025 single pension value.

The expenditure of the pension Fund would, according to the draft law in the beginning in the year 2018 approximately 600 million euros. To complete the alignment, they would grow annually at 3.7 billion euros in the year 2024. By 2025, the annual estimated cost of 3.9 billion euros. This is according to the Ministry, but the “maximum expected cost effect”.

The calculation no longer is based on the design of the computational assumption that wages in the East – and therefore the pensions are rising faster than in the West. In the case of progressive approximation of the charges, the more expenses are low.

improvement in disability pensions

Nahles presented to the Chancellery in addition, a design for higher disability pensions. As in the coalition of Union and SPD agreed to as of 2018, the so-called allocation of time in increments of three years until 65. Age be extended. Starting in the year 2024 incapacity would calculate pensions for new entrants, then, the early retirees up to the age of 65. Years of age would have worked. The costs are initially low and are estimated for 2021 to 140 million euros. In the long term, the expenditure rose to EUR 1.5 billion in 2030 and to 3.2 billion euros in 2045.


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